FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-14864
LINEAR TECHNOLOGY CORPORATION
-----------------------------
(Exact name of registrant as specified in its charter)
California 94-2778785
---------- ----------
(State or other jurisdiction (I.R.S. Employer Identification No.)
or incorporation)
1630 McCarthy Blvd.
Milpitas, California 95035-7417
(408) 432-1900
--------------
(Address, including zip code and telephone number, including area code of
registrant's principal executive offices)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
There were 76,854,413 shares of the Registrant's Common Stock issued
and outstanding as of May 6, 1998.
<PAGE>
LINEAR TECHNOLOGY CORPORATION
FORM 10-Q
THREE AND NINE MONTHS ENDED MARCH 29, 1998
<TABLE>
<CAPTION>
INDEX Page
----- ----
<S> <C>
Part I: Financial Information
Item 1. Financial Statements
Condensed Consolidated Statements of Income for the 2
three and nine months ended March 29, 1998 and
March 30, 1997
Condensed Consolidated Balance Sheets at March 29, 1998 3-4
and June 29, 1997
Condensed Consolidated Statements of Cash Flows for the 5
nine months ended March 29, 1998 and March 30, 1997
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial 7-9
Condition and Results of Operations
Part II: Other Information
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
</TABLE>
1
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
LINEAR TECHNOLOGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
<S> <C> <C> <C> <C>
March 29, March 30, March 29, March 30,
1998 1997 1998 1997
-------- -------- -------- --------
Net sales $125,982 $ 95,033 $352,788 $275,176
Cost of sales 35,924 27,435 100,954 79,247
-------- -------- -------- --------
Gross profit 90,058 67,598 251,834 195,929
-------- -------- -------- --------
Expenses:
Research and development 11,973 9,268 33,368 25,661
Selling, general and
administrative 13,401 10,641 38,468 34,139
-------- -------- -------- --------
25,374 19,909 71,836 59,800
-------- -------- -------- --------
Operating income 64,684 47,689 179,998 136,129
Interest income 6,043 4,031 17,004 11,464
-------- -------- -------- --------
Income before income taxes 70,727 51,720 197,002 147,593
Provision for income taxes 23,553 17,740 65,603 50,624
-------- -------- -------- --------
Net income $ 47,174 $ 33,980 $131,399 $ 96,969
======== ======== ======== ========
Basic earnings per share $ 0.62 $ 0.45 $ 1.72 $ 1.30
======== ======== ======== ========
Shares used in the calculation
of basic earnings per share 76,130 75,138 76,191 74,756
======== ======== ======== ========
Diluted earnings per share $ 0.59 $ 0.43 $ 1.65 $ 1.24
======== ======== ======== ========
Shares used in the calculation of
diluted earnings per share 79,661 78,993 79,860 78,281
======== ======== ======== ========
Cash dividends declared per share $ 0.06 $ 0.05 $ 0.18 $ 0.15
======== ======== ======== ========
<FN>
See accompanying notes
</FN>
</TABLE>
2
<PAGE>
<TABLE>
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
(In thousands)
<CAPTION>
March 29, June 29,
1998 1997
--------- ---------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 117,370 $ 50,114
Short-term investments 449,873 393,325
Accounts receivable, net of allowance for
doubtful accounts of $806 ($803 at
June 29, 1997) 67,083 64,836
Inventories:
Raw materials 4,383 4,001
Work-in-process 6,179 4,820
Finished goods 4,433 3,364
--------- ---------
Total inventories 14,995 12,185
Deferred tax assets 30,168 30,698
Prepaid expenses and other current assets 3,942 8,128
--------- ---------
Total current assets 683,431 559,286
--------- ---------
Property, plant and equipment, at cost:
Land, building and improvements 55,337 53,312
Manufacturing and test equipment 147,942 130,175
Office furniture and equipment 3,143 2,707
--------- ---------
206,422 186,194
Less accumulated depreciation and
amortization (80,435) (65,847)
--------- ---------
Net property, plant and equipment 125,987 120,347
--------- ---------
$ 809,418 $ 679,633
========= =========
<FN>
See accompanying notes
</FN>
</TABLE>
3
<PAGE>
<TABLE>
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
LIABILITIES & SHAREHOLDERS' EQUITY
(In thousands)
<CAPTION>
March 29, June 29,
1998 1997
-------- --------
(unaudited)
<S> <C> <C>
Current liabilities:
Accounts payable $ 9,087 $ 7,872
Accrued payroll and related benefits 21,014 21,423
Deferred income on shipments to distributors 34,225 29,986
Income taxes payable 27,158 16,124
Other accrued liabilities 16,657 13,581
-------- --------
Total current liabilities 108,141 88,986
Deferred tax liabilities 2,256 1,596
Shareholders' equity:
Common stock, no par value, 120,000
shares authorized; 76,495
shares issued and outstanding at
March 29, 1998 (75,956 shares
at June 29, 1997) 218,667 172,403
Retained earnings 480,354 416,648
-------- --------
Total shareholders' equity 699,021 589,051
-------- --------
$809,418 $679,633
======== ========
<FN>
See accompanying notes
</FN>
</TABLE>
4
<PAGE>
<TABLE>
LINEAR TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(In thousands)
(unaudited)
<CAPTION>
Nine Months Ended
-----------------------------
March 29, March 30,
1998 1997
--------- ---------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 131,399 $ 96,969
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 14,799 8,835
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (2,247) (13,677)
Decrease (increase) in inventories (2,810) 1,234
Decrease (increase) in deferred tax assets,
prepaid expenses and other current assets 4,716 870
Increase (decrease) in accounts payable,
accrued payroll, income taxes payable and
other accrued liabilities 14,916 (15,248)
Tax benefit from stock option transactions 27,778 13,573
Increase (decrease) in deferred income 4,239 1,707
Increase (decrease) in deferred tax liabilities 660 --
--------- ---------
Cash provided by operating activities 193,450 94,263
--------- ---------
Cash flow from investing activities:
Purchase of short-term investments (338,480) (184,090)
Proceeds from sales and maturities of short-term
investments 281,932 109,356
Purchase of property, plant and equipment (20,439) (19,649)
--------- ---------
Cash used in investing activities (76,987) (94,383)
--------- ---------
Cash flow from financing activities:
Issuance of common stock under employee stock plans 20,955 12,625
Purchase of common stock (56,445) (11,598)
Payment of cash dividends (13,717) (11,192)
--------- ---------
Cash used in financing activities (49,207) (10,165)
--------- ---------
Increase (decrease) in cash and cash equivalents 67,256 (10,285)
Cash and cash equivalents, beginning of period 50,114 54,393
--------- ---------
Cash and cash equivalents, end of period $ 117,370 $ 44,108
========= =========
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $ 25,066 $ 36,303
========= =========
<FN>
See accompanying notes
</FN>
</TABLE>
5
<PAGE>
LINEAR TECHNOLOGY CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Interim financial statements and information are unaudited; however, in the
opinion of management all adjustments necessary for a fair and accurate
presentation of the interim results have been made. All such adjustments
were of a normal recurring nature. The results for the three months and
nine months ended March 29, 1998 are not necessarily an indication of
results to be expected for the entire fiscal year. All information reported
in this Form 10-Q should be read in conjunction with the Company's annual
consolidated financial statements for the fiscal year ended June 29, 1997
included in the Company's Annual Report to Shareholders. The accompanying
balance sheet at June 29, 1997 has been derived from audited financial
statements as of that date.
2. The Company operates on a 52/53 week year ending on the Sunday nearest June
30. Fiscal 1998 and 1997 each have 52 weeks.
3. In 1997, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards Number 128, Earnings Per Share ("FAS
128"). As required, the Company adopted FAS 128 during the quarter ended
December 28, 1997. Under the requirements of FAS 128, the Company is
required to disclose both basic earnings per share and diluted earnings per
share in place of primary earnings per share previously reported by the
Company. Basic earnings per share is based upon the weighted average number
of shares of common stock outstanding during the period and, unlike primary
earnings per share, excludes the dilutive effect of employee stock options.
Diluted earnings per share includes the dilutive effect of employee stock
options and accordingly, is comparable to primary earnings per share
previously reported by the Company. All earnings per share amounts for the
periods presented have been restated to conform to the requirements of FAS
128. The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
March 29, March 30, March 29, March 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Numerator - Net income $ 47,174 $ 33,980 $131,399 $ 96,969
-------- -------- -------- --------
Denominator for basic
earnings per share - weighted
average shares 76,130 75,138 76,191 74,756
--------
Effect of dilutive securities
- - employee stock options 3,531 3,855 3,669 3,525
-------- -------- -------- --------
Denominator for diluted
earnings per share 79,661 78,993 79,860 78,281
-------- -------- -------- --------
Basic earnings per share $ 0.62 $ 0.45 $ 1.72 $ 1.30
======== ======== ======== ========
Diluted earnings per share $ 0.59 $ 0.43 $ 1.65 $ 1.24
======== ======== ======== ========
</TABLE>
4. In June 1997, the FASB issued Statement of Financial Accounting Standards
Number 131, Disclosures About Segments of an Enterprise and Related
Information. This statement replaces Statement Number 14 and changes the
way public companies report segment information. This statement is
effective for fiscal years beginning after December 15, 1997 and will be
adopted by the Company for the fiscal year ending June 27, 1999.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
<TABLE>
The table below states the income statement items for the three and
nine months ended March 29, 1998 and March 30, 1997 as a percentage of net sales
and provides the percentage change in absolute dollars of such items comparing
the interim periods ended March 29, 1998 to the corresponding periods from the
prior fiscal year:
<CAPTION>
Three Months Ended Nine Months Ended
---------------------------------------------- ---------------------------------------
March 29, March 30, Increase March 29, March 30, Increase
1998 1997 1998 1997
<S> <C> <C> <C> <C> <C> <C>
Net sales 100.0% 100.0% 33% 100.0% 100.0% 28%
Cost of sales 28.5 28.9 31 28.6 28.8 27
------ ------ ------ ------
Gross profit 71.5 71.1 33 71.4 71.2 29
------ ------ ------ ------
Expenses:
Research & development 9.5 9.7 29 9.5 9.3 30
Selling, general &
administrative 10.7 11.2 26 10.9 12.4 13
------ ------ ------ ------
20.2 20.9 27 20.4 21.7 20
------ ------ ------ ------
Operating income 51.3 50.2 36 51.0 49.5 32
Interest income 4.8 4.2 50 4.8 4.1 48
------ ------ ------ ------
Income before income taxes 56.1% 54.4% 37 55.8% 53.6% 33
====== ====== ====== ======
Effective tax rates 33.3% 34.3% 33.3% 34.3%
====== ====== ====== ======
</TABLE>
Net sales for the third quarter ended March 29, 1998 were a record
$126.0 million, an increase of $30.9 million or 33% over net sales for the same
quarter of the previous year. This increase was due primarily to higher unit
shipments while the average selling price was down slightly from the prior year
quarter. The increase was broad-based among the Company's end-markets and
between distributor and OEM customers. Geographically, sales were up both
domestically and internationally with sales increases in each of the Company's
major international markets. Domestic and International sales each represented
50% of net sales for the quarter with Europe at 26%, Japan at 10% and Rest of
World (primarily rest of Asia) at 14% of net sales. The Company did not
experience a significant decline year over year in sales during the quarter
resulting from the economic and financial difficulties in Asia that has affected
other companies in the industry. However, sales to certain countries in that
region were down slightly from the second quarter of fiscal 1998. Despite this
decline, total international sales and orders increased sequentially from the
second quarter.
Net sales for the nine months ended March 29, 1998 increased $77.6
million or 28% over net sales for the same period of the previous year. This
increase was due primarily to higher unit shipments while the average selling
price was slightly lower.
Gross profit increased $22.5 million or 33% and $55.9 million or 29%
for the third quarter and first nine months of fiscal 1998 over the
corresponding periods in fiscal 1997. Gross profit as a percentage of net sales
increased slightly over these periods primarily due to manufacturing
efficiencies experienced at the Company's assembly and test facilities in
Singapore and Malaysia, lower costs from favorable exchange rates in Singapore
and Malaysia and higher absorbed fixed manufacturing costs resulting from the
higher sales base. These increases were offset partially by an increase in
manufacturing costs associated with the Company's newer wafer fabrication plant
in Camas, Washington which commenced production in the fourth quarter of fiscal
1997. However, the negative impact from the Camas facility decreased
sequentially from the Company's second quarter of fiscal 1998 due to the
attainment of higher production volumes.
Research and development expenses increased by $2.7 million or 29% and
$7.7 million or 30% for the third quarter and first nine months of fiscal 1998,
respectively, as compared to the same periods in fiscal 1997.
7
<PAGE>
These increases were due primarily to an increase in staffing of design, test
and process engineering personnel, higher compensation costs from profit sharing
and an increase in spending for development mask sets.
Selling, general and administrative expenses ("SG&A") increased $2.8
million or 26% and $4.3 million or 13% for the third quarter and first nine
months of fiscal 1998, respectively, as compared to the same periods of fiscal
1997. The increases in SG&A as compared to the prior year periods were primarily
due to higher labor costs from an increase in sales personnel, higher profit
sharing, higher commissions on the increase in sales levels and higher legal
costs as the Company is the plaintiff in two patent related suits.
Interest income was $6.0 million and $17.0 million for the third
quarter and first nine months of fiscal 1998, an increase of $2.0 million and
$5.5 million respectively, over the corresponding periods of fiscal 1997. The
increases in interest income for these periods resulted primarily from the large
increase in cash, cash equivalents and short-term investments.
The Company's effective tax rate for the third quarter and the first
nine months of fiscal 1998 was 33.3%, down from 34.3% in fiscal 1997. The lower
tax rate is due to higher business activity in foreign jurisdictions and an
increase in assets employed outside of California in states where the Company
experiences lower tax rates.
Factors Affecting Future Operating Results
Except for historical information contained herein, the matters set
forth in this Form 10-Q, including the statements in the following paragraphs,
are forward-looking statements that are dependent on certain risks and
uncertainties including such factors, among others, as the timing, volume and
pricing of new orders received and shipped during the quarter, timely ramp-up of
new facilities, the timely introduction of new processes and products, general
conditions in the world economy and the markets for the Company's goods, and
other factors described below.
Management of the Company believes the long-term prospects for the
business are excellent, and the Company continues to invest in the plant
infrastructure and technical talent to maximize its opportunities. The Company
achieved record sales and profits during the third quarter of fiscal 1998, the
Company's fifth consecutive quarter of quarterly sequential sales growth. During
the first three quarters of the fiscal year, total customer orders continued to
be strong. These orders were well diversified across products, end markets,
customers and most major geographic regions. Should this pattern continue, the
Company expects to grow sales moderately over the near term.
The Company sells its products to distributors and manufacturers
located within certain Asian countries that are currently experiencing economic
and/or other financial difficulties. Although the Company has seen a slight to
moderate decline in customer orders and sales in certain of these countries,
these declines did not have a material impact on the Company's results for the
third quarter ended March 29, 1998. The Company is anticipating that sales to
Asia, and Japan in particular, will remain relatively flat over the near term
but that other major geographic sales regions should continue to experience
sales growth. Accordingly, the Company does not expect that the financial
difficulties experienced in Asia will have a significant impact on the Company's
results of operations in the near term. However, should the financial
difficulties experienced in this region become prolonged or affect other
countries where the Company generates significant revenues, there can be no
assurance that the Company's results of operations will not be adversely
impacted in the future.
The Company continues to ramp-up production volumes in its new wafer
fabrication facility in Camas, Washington. During the first nine months of
fiscal 1998, the fixed and variable costs associated with this ramp-up of
production had a negative impact on the Company's gross margin. However, the
negative margin impact of the Camas facility began to decrease in the third
quarter as the plant achieved higher production volumes. There can be no
assurance that this trend will continue or that other factors will not arise
that will adversely affect gross margin.
Just after the close of the third quarter, the Company announced plans
to build another wafer fabrication plant near its facility in California.
Capital outlays for the plant are expected to commence in fiscal 1999 with
8
<PAGE>
capital costs totaling approximately $75 million for initial production.
Production in this plant will not commence until the year 2000.
Past performance of the Company may not be a good indicator of future
performance due to factors affecting the Company, its competitors, the
semiconductor industry and the overall economy. The semiconductor industry is
characterized by rapid technological change, price erosion, cyclical market
patterns, occasional shortages of materials, capacity constraints, occasional
oversupply and overcapacity, variations in manufacturing efficiencies and
significant expenditures for capital equipment and product development.
Furthermore, new product introductions and patent protection of existing
products are critical factors for future sales growth and sustained
profitability.
Although the Company believes that it has the product lines,
manufacturing facilities and technical and financial resources for its current
operations, sales and profitability can be significantly affected by the above
and other factors. Additionally, the Company's common stock could be subject to
significant price volatility should sales and/or earnings fail to meet
expectations of the investment community.
Liquidity and Capital Resources
At March 29, 1998, cash, cash equivalents and short-term investments
totaled $567.2 million, and working capital was $575.3 million.
During the first nine months of fiscal 1998, the Company generated
$193.4 million of cash from operating activities. Additionally, the Company
generated $21.0 million in proceeds from common stock issued under employee
stock option and stock purchase plans.
During the first nine months of fiscal 1998, significant cash
expenditures included net purchases of short-term investments of $56.5 million
and $20.4 million for the purchase of capital assets, primarily manufacturing
equipment for the Company's fabrication, assembly and test facilities. During
the second quarter of fiscal 1998, the Company purchased 1,002,500 shares of its
common stock for $56.4 million of which $5.9 million was paid in the third
quarter. The Company also paid $13.7 million for cash dividends to shareholders
representing $0.06 per share per quarter. In April 1998, the Company's Board of
Directors declared a quarterly cash dividend of $0.06 per share to be paid
during the fourth quarter of fiscal 1998. The payment of future dividends will
be based on quarterly financial performance.
Historically, the Company has satisfied its liquidity needs through
cash generated from operations, the placement of equity securities and the
utilization of lease financing for capital equipment and facilities. Given its
strong financial condition and performance, the Company believes that current
capital resources and cash generated from operating activities will be
sufficient to meet its liquidity and capital expenditures requirements for the
foreseeable future.
9
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
27.1 Financial Data Schedule for the three months ended
March 29, 1998
27.2 Financial Data Schedule for the three months ended
March 30, 1997 (Restated)
27.3 Financial Data Schedule for the three months ended
September 28, 1997 (Restated)
27.4 Financial Data Schedule for the three months ended
December 28, 1997 (Restated)
b) Reports on Form 8-K
None
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
LINEAR TECHNOLOGY CORPORATION
DATE: May 11, 1998 BY /s/Paul Coghlan
-----------------------------
Paul Coghlan
Vice President, Finance &
Chief Financial Officer
(Duly Authorized Officer and
Principal Financial Officer)
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 29, 1998
</LEGEND>
<CIK> 0000791907
<NAME> LINEAR TECHNOLOGY CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-28-1998
<PERIOD-START> DEC-29-1997
<PERIOD-END> MAR-29-1998
<CASH> 117,370
<SECURITIES> 449,873
<RECEIVABLES> 67,083
<ALLOWANCES> 806
<INVENTORY> 14,995
<CURRENT-ASSETS> 683,431
<PP&E> 206,422
<DEPRECIATION> 80,435
<TOTAL-ASSETS> 809,418
<CURRENT-LIABILITIES> 108,141
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 699,021
<TOTAL-LIABILITY-AND-EQUITY> 809,418
<SALES> 125,982
<TOTAL-REVENUES> 125,982
<CGS> 35,924
<TOTAL-COSTS> 35,924
<OTHER-EXPENSES> 25,374
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 70,727
<INCOME-TAX> 23,553
<INCOME-CONTINUING> 47,174
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 47,174
<EPS-PRIMARY> 0.62
<EPS-DILUTED> 0.59
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 30, 1997 (RESTATED)
</LEGEND>
<CIK> 0000791907
<NAME> LINEAR TECHNOLOGY CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-29-1997
<PERIOD-START> DEC-30-1997
<PERIOD-END> MAR-30-1997
<CASH> 44,108
<SECURITIES> 342,813
<RECEIVABLES> 62,072
<ALLOWANCES> 806
<INVENTORY> 11,696
<CURRENT-ASSETS> 494,902
<PP&E> 184,150
<DEPRECIATION> 62,414
<TOTAL-ASSETS> 616,638
<CURRENT-LIABILITIES> 72,857
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 540,864
<TOTAL-LIABILITY-AND-EQUITY> 616,638
<SALES> 95,033
<TOTAL-REVENUES> 95,033
<CGS> 27,435
<TOTAL-COSTS> 27,435
<OTHER-EXPENSES> 19,909
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 51,720
<INCOME-TAX> 17,740
<INCOME-CONTINUING> 33,980
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 33,980
<EPS-PRIMARY> 0.45
<EPS-DILUTED> 0.43
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
FORM 10-Q FOR THE THREE MONTHS ENDED SEPTEMBER 28, 1997 (RESTATED)
</LEGEND>
<CIK> 0000791907
<NAME> LINEAR TECHNOLOGY CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-28-1998
<PERIOD-START> JUN-30-1997
<PERIOD-END> SEP-28-1997
<CASH> 54,207
<SECURITIES> 451,777
<RECEIVABLES> 58,104
<ALLOWANCES> 806
<INVENTORY> 13,586
<CURRENT-ASSETS> 615,138
<PP&E> 192,587
<DEPRECIATION> 70,524
<TOTAL-ASSETS> 737,201
<CURRENT-LIABILITIES> 94,531
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 641,074
<TOTAL-LIABILITY-AND-EQUITY> 737,201
<SALES> 109,802
<TOTAL-REVENUES> 109,802
<CGS> 31,384
<TOTAL-COSTS> 31,384
<OTHER-EXPENSES> 22,779
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 60,935
<INCOME-TAX> 20,292
<INCOME-CONTINUING> 40,643
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40,643
<EPS-PRIMARY> 0.53
<EPS-DILUTED> 0.51
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
FORM 10-Q FOR THE THREE MONTHS ENDED DECEMBER 30, 1997 (RESTATED)
</LEGEND>
<CIK> 0000791907
<NAME> LINEAR TECHNOLOGY CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-28-1998
<PERIOD-START> OCT-29-1997
<PERIOD-END> DEC-30-1997
<CASH> 60,800
<SECURITIES> 451,900
<RECEIVABLES> 56,855
<ALLOWANCES> 806
<INVENTORY> 15,107
<CURRENT-ASSETS> 623,174
<PP&E> 201,389
<DEPRECIATION> 75,438
<TOTAL-ASSETS> 749,125
<CURRENT-LIABILITIES> 115,492
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 632,037
<TOTAL-LIABILITY-AND-EQUITY> 749,125
<SALES> 117,004
<TOTAL-REVENUES> 117,004
<CGS> 33,646
<TOTAL-COSTS> 33,646
<OTHER-EXPENSES> 23,683
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 65,340
<INCOME-TAX> 21,758
<INCOME-CONTINUING> 43,582
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 43,582
<EPS-PRIMARY> 0.57
<EPS-DILUTED> 0.55
</TABLE>
